Truist shares tumble 5% as bank misses Q4 EPS but unveils $10b buyback and 2027 ROTCE goal
Truist posts Q4 2025 EPS of $1.00 on higher expenses and legal charges, misses forecasts but authorizes a $10b buyback and targets 15% ROTCE by 2027.
- Q4 2025 EPS came in at $1.00 vs $1.09 expected, with revenue at $5.25b, hurt by legal accruals and severance costs that shaved $0.12 off EPS.
- Net interest income rose 1.9% on loan and deposit growth, while noninterest income stayed stable and noninterest expenses climbed 5.2% on personnel and legal charges.
- Truist authorized up to $10b in share repurchases, reported a 10.8% CET1 ratio, and is targeting 15% ROTCE by 2027 with tech, talent, and risk investments.
Truist Financial Corporation (TFC) reported fourth-quarter 2025 diluted earnings per share of $1.00, missing analyst expectations of $1.09, according to the company’s earnings announcement.
The Charlotte, North Carolina-based bank posted total revenue of $5.25 billion for the quarter, falling short of the anticipated $5.31 billion. The company attributed the shortfall to an incremental legal accrual and severance charges, which reduced earnings per share by $0.12.
Truist Ventures has invested in fintechs that can interact with digital assets (e.g., Spectral) and writes about enterprise blockchain in finance. Digital assets are part of its core strategy in what is known in the industry as ’embedded banking’, alongside APIs, and real-time payments (One View / One View Connect).
Truist Q4 earnings
Net interest income increased 1.9% from the previous quarter, driven by loan and deposit growth, the company stated. Noninterest income remained stable compared to the third quarter, with declines in some categories offset by gains in investment banking and trading income.
Noninterest expenses rose 5.2% due to higher personnel expenses and the legal accrual, according to the earnings report.
Truist announced a share repurchase authorization of up to $10 billion with no expiration date as part of its capital distribution strategy. The company’s Common Equity Tier 1 ratio stood at 10.8%, down slightly from the previous quarter.
The bank outlined strategic guidance focused on enhancing client relationships, operational efficiency, and capital returns. Truist set a target of achieving a 15% return on tangible common equity by 2027.
The company stated it plans to invest in talent and technology while emphasizing risk management and governance practices.
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